HCS HB 2156 -- MOTHERHOOD/FATHERHOOD STAY-AT-HOME TAX CREDIT

SPONSOR:  Richard (Grill)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Job Creation and Economic Development by a vote of 10 to 1.

Beginning January 1, 2008, this substitute authorizes the
Motherhood/Fatherhood Stay-at-Home tax credit for a married
parent who stays at home to provide care for her/his dependent
child up to 24 months of age.  Any married parent who was
gainfully employed before the birth or adoption of a child whose
annual salary was less than $100,000 in the year before choosing
to become a stay-at-home parent is eligible for the tax credit.
The credit will be 25% of the stay-at-home parent's annual salary
if the salary is $35,000 or less, 20% if the annual salary is
between $35,000 and $70,000, or 15% if the annual salary is
between $70,000 and $100,000.  The tax credit cannot be refunded,
transferred, sold, or assigned but can be carried forward up to
three years.  The annual cumulative amount of credits issued may
not exceed $2 million.

The provisions of the substitute will expire December 31 six
years from the effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$2,066,052 in FY 2009, $2,068,303 in FY 2010, and $2,070,353 in
FY 2011.  No impact on Other State Funds in FY 2009, FY 2010, and
FY 2011.

PROPONENTS:  Supporters say that the tax credit will encourage
more parents to stay home with their children during these
developmentally important months.

Testifying for the bill was Representative Grill.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm